LOS ANGELES, CA – Adeel Shams, the founder of the prominent online sneaker resale business Coolkicks, was arrested on October 2, 2025, in Los Angeles after a search warrant executed by the Los Angeles Police Department (LAPD) at a Santa Monica warehouse uncovered approximately $500,000 worth of allegedly stolen Nike merchandise. The significant seizure includes over 2,100 pairs of Nike shoes and 150 cartons of Nike clothing, believed to be part of a larger cargo theft operation.
Warehouse Raid Amidst Live Stream
The dramatic events unfolded while Shams, 34, was in the midst of live-streaming an online auction on the Whatnot platform from the Coolkicks warehouse. Initial reports indicated confusion at the scene, with Shams appearing to question if he was the victim of a “swatting” incident as law enforcement officers entered the premises. Four individuals were detained during the operation, with Shams being formally arrested on a felony charge of receiving stolen property valued at over $950. He was booked into the LAPD’s Metropolitan Detention Center but has since been released, with a court appearance scheduled for October 23.
The investigation, led by the LAPD’s Commercial Crimes Division Cargo Theft Unit, involved a multi-agency collaboration, including the Union Pacific Railroad Police, Los Angeles Port Police, Los Angeles World Airport Police, and the Los Angeles County District Attorney’s Office. Authorities confirmed that the recovered merchandise was stolen from cargo trains, underscoring the growing problem of large-scale cargo theft impacting major brands.
Discovery of Stolen Nike Goods
The search of the Santa Monica warehouse revealed a substantial quantity of Nike products. Detectives recovered over 2,100 pairs of Nike sneakers and 150 cartons filled with Nike apparel, with an estimated total value of $500,000. The Los Angeles Police Department stated that the investigation determined the merchandise was stolen from train cargo, suggesting a connection to organized theft rings. Importantly, law enforcement has not alleged that any of the seized products were counterfeit.
Coolkicks Issues Statement Amidst Controversy
In the wake of the raid and arrest, Coolkicks released a statement expressing shock and asserting its commitment to legitimate business practices. The company stated that the impounded Nike sneakers were purchased and received within the 48 hours prior to the raid, and that neither its leadership nor staff had any knowledge or reason to believe the merchandise was stolen. Coolkicks emphasized that it entered into the purchase in “good faith,” upholding its reputation for integrity and trust. The company also clarified that no allegations of counterfeiting have been made, reaffirming its dedication to selling authentic, high-quality products. The statement concluded with an expression of confidence that the truth would prevail and expressed regret for any concern caused to its community.
Broader Implications for the Resale Market
Coolkicks, known for its popular online presence, celebrity clientele, and viral content featuring authenticators like Rami Almordaah, has been a significant player in the booming sneaker resale market. Founded by Adeel Shams in 2014, the brand expanded from Richmond, Virginia, to establish a notable presence in Los Angeles, including a flagship store on Melrose Avenue. The current news brings heightened scrutiny to the sourcing and transparency practices prevalent in the high-stakes world of sneaker reselling, a market where authenticity and trust are paramount.
The incident highlights ongoing challenges with cargo theft targeting high-value goods, particularly in regions like Southern California. Recent years have seen numerous reports of large-scale thefts from Nike’s supply chain, involving warehouses, trucks, and trains across the country. This arrest and seizure underscore the LAPD’s ongoing efforts to combat such criminal activities and preserve the integrity of commercial supply chains.
Ongoing Investigation and Future Outlook
The investigation into the stolen Nike goods and their alleged acquisition by Coolkicks is ongoing. The LAPD has indicated that further arrests are possible as authorities continue to unravel the network involved in the cargo theft. Adeel Shams is due to appear in court on October 23 to face the charges. This development is closely watched by enthusiasts and participants in the sneaker resale community, who will be following the legal proceedings and the potential impact on the industry’s reputation and operational standards. The news represents a significant current event in the trending topic of supply chain security and the accountability within the lucrative sneaker resale market.
